CROWN SIGNS RENEWABLE ENERGY DEAL SIGNIFICANTLY EXPANDING COVERAGE OF ITS ELECTRICITY CONSUMPTION IN EUROPE

Rhea-AI Summary

Crown Holdings, Inc. (CCK) signs a 15-year Virtual Power Purchase Agreement with Enel Green Power España, reinforcing its commitment to sustainability and renewable energy. The agreement covers Crown's European operations, contributing to its Twentyby30™ program goals. The PV project in Spain will save emissions equivalent to 40,000 homes' electricity use annually.

Insights

Energy Sector Analyst

The Virtual Power Purchase Agreement (VPPA) between Crown Holdings, Inc. and Enel Green Power España is a strategic move within the renewable energy sector that could have a significant impact on Crown's operational costs and public image. By securing a large percentage of their energy from renewable sources, Crown is likely to benefit from predictable energy pricing over the long term, which can help stabilize operating expenses amidst volatile energy markets. Furthermore, this commitment can enhance Crown's brand reputation as a sustainable and responsible company, potentially increasing customer loyalty and attracting investor interest in an era where environmental, social and governance (ESG) factors are becoming increasingly important in investment decisions.

Sustainability Consultant

The adoption of a VPPA by Crown Holdings as part of its Twentyby30™ sustainability program aligns with global trends towards decarbonization and demonstrates an actionable commitment to achieving Science Based Targets initiative (SBTi)-approved goals. The estimated annual output of the new PV project and the projected CO2 emissions savings are key indicators of Crown's potential to reduce its carbon footprint. This proactive approach to sustainability can serve as a benchmark for the industry and may influence supply chain partners to adopt similar measures, creating a ripple effect that promotes broader environmental benefits.

Financial Analyst

From a financial perspective, Crown's VPPA is an investment in long-term cost management and risk mitigation. The renewable energy project is expected to provide a substantial portion of Crown's energy needs in Europe, which could lead to significant operational savings compared to non-renewable energy sources, especially considering potential future regulations and carbon taxes. Additionally, the positive environmental impact of the project may improve Crown's standing with regulatory bodies, potentially resulting in favorable treatment or incentives. Investors should monitor the implementation and operation of the project closely as it could serve as a predictor of future profitability and a model for similar initiatives within the industry.

Renewable energy (RE) adoption drives Crown's Twentyby30™ targets forward; new Virtual Power Purchase Agreement (VPPA) shows continued commitment to sustainability

TAMPA, Fla., Feb. 28, 2024 /PRNewswire/ -- Crown Holdings, Inc. (NYSE: CCK) has entered a 15-year Virtual Power Purchase Agreement (VPPA) with Enel Green Power España (EGPE), Endesa's renewable energy subsidiary, securing renewable electricity from a new PV project built in Badajoz, Spain. This deal will cover all of Crown's current operational footprint in European countries that are part of the Alliance of Issuing Bodies (AIB), which manages the European Energy Certificate System, allowing the Company to advance in its Twentyby30™ sustainability program.

The PV project will contribute to Crown's overall goal of stronger corporate stewardship. To initiate this latest effort around responsible solutions, Crown worked with Schneider Electric, the leading adviser in corporate renewable energy procurement and carbon management, on the project selection and VPPA negotiation.

This agreement is Crown's first VPPA in Europe and demonstrates the Company's commitment to reduce greenhouse gas emissions and to act locally. The project is expected to produce an annual output of 285,100 Megawatt hours (MWh), of which Crown is contracted for around 70%—saving the CO₂ emissions equivalent of nearly 40,000 homes' electricity use for one year. Scheduled to start operation in October 2025, the renewable energy supply from the PV power plant follows Crown's earlier renewable energy project designed to address decarbonization and sustainability goals.

In 2020, Crown became the first metal packaging manufacturer to activate renewable electricity in 100% of its U.S. and Canadian beverage can plants when it executed a VPPA in Texas. Sourcing wind power, the project was estimated to prevent over 310,000 metric tons of carbon emissions each year—equal to taking at least 67,000 passenger vehicles off the road for one year.

Renewable energy is a key target in Crown's sustainability strategy. Once operational, the PV project VPPA will directly contribute to the Science Based Targets initiative (SBTi)-approved goal of Crown's Twentyby30™ program to achieve 75% renewable energy by 2030 and 100% by 2040.

"Covering our energy consumption in the EU serves as a milestone achievement for our organization," said John Rost, Senior Vice President – Corporate Technology, Sustainability and Regulatory Affairs. "As we work toward the ambitious goals of our sustainability program, it is critical we identify and implement real solutions that can reduce our energy consumption, lower our emissions and create a more balanced footprint for our business, across all regions in which we operate. Working with Schneider Electric to establish an impactful VPPA in Europe underscores that we are taking responsibility for our actions and striving to be the strongest partner possible." 

"Crown stands as a leader in the packaging industry's decarbonization efforts, showing a strong commitment to sustainability," said John Powers, VP Global Renewables at Schneider Electric. "We're proud to have facilitated this pivotal agreement between Crown and EGPE, which significantly advances Crown's environmental and sustainability initiatives."

About Crown Holdings, Inc.
Crown Holdings, Inc., through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets. World headquarters are located in Tampa, Florida. For more information, visit www.crowncork.com.

For more information, contact sustainability@crowncork.com.
For editorial inquiries: Emily Hogan, Senior Account Executive, FINN Partners; Tel: (630) 248-5232; Email: emily.hogan@finnpartners.com.

Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this press release consists of forward-looking statements within the meaning of federal securities law. These forward-looking statements involve a number of risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied in the forward-looking statements. Important factors that could cause the statements made in this release or the actual results of operations or financial condition of the Company to differ are discussed under the caption "Forward Looking Statements" in the Company's Form 10-K Annual Report for the year ended December 31, 2023 and in subsequent filings. The Company does not intend to review or revise any particular forward-looking statement in light of future events.

About Schneider Electric
Schneider's purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. We call this Life Is On.

Our mission is to be your digital partner for Sustainability and Efficiency.

We drive digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle, enabling integrated company management, for homes, buildings, data centers, infrastructure and industries.

We are the most local of global companies. We are advocates of open standards and partnership ecosystems that are passionate about our shared Meaningful Purpose, Inclusive and Empowered values.

About Enel Green Power
Enel Green Power®, within the Enel Group, develops and operates renewable energy plants worldwide and is present in Europe, the Americas, Africa, Asia and Oceania. A world leader in clean energy, with a total capacity of around 61 GW and a generation mix that includes wind, solar, geothermal, and hydroelectric power, as well as energy storage facilities, Enel Green Power is at the forefront of integrating innovative technologies into renewable energy plants.

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SOURCE Crown Holdings, Inc.

FAQ

What is the Virtual Power Purchase Agreement (VPPA) Crown Holdings, Inc. (CCK) has entered into?

Crown Holdings, Inc. (CCK) has entered a 15-year VPPA with Enel Green Power España (EGPE) to secure renewable electricity from a new PV project in Badajoz, Spain.

What is the expected annual output of the PV project in Spain?

The PV project in Spain is expected to produce an annual output of 285,100 Megawatt hours (MWh).

What percentage of the output is Crown Holdings, Inc. (CCK) contracted for?

Crown Holdings, Inc. (CCK) is contracted for around 70% of the annual output of the PV project in Spain.

When is the renewable energy supply from the PV power plant expected to start?

The renewable energy supply from the PV power plant is scheduled to start operation in October 2025.

What are the sustainability goals of Crown Holdings, Inc. (CCK) through its Twentyby30™ program?

Crown Holdings, Inc. (CCK) aims to achieve 75% renewable energy by 2030 and 100% by 2040 as part of its Twentyby30™ program.